Aite Group research reveals that the customary methods of fighting traditional fraud are not enough to combat new, more sophisticated fraud schemes.
Boston, July 27, 2017 —A new Aite Group report, Fighting Emerging Fraud Schemes With Data and Artificial Intelligence, explores the types of fraud that carriers are encountering and the technology that is available to help them combat it. Aite Group’s research shows that fraud is a staggering issue due to not only its one-time monetary cost but also the long-term investment necessary to fight it as fraudsters deploy more sophisticated strategies to find new vulnerabilities.
“The expense is not just a factor of more fraud; it’s a matter of spending money to investigate fraud and diverting resources from other functions that are pressured to increase revenue,” says Aite Group senior analyst Jay Sarzen. “But this gets magnified when carriers are forced to take rate to make up for fraud losses. Given how competitive the distribution landscape has become, this is not an optimal approach to solving the problem,” he says.
This Impact Report is based on 26 Aite Group interviews conducted between March 2017 and June 2017 and focuses on shifting customer preferences, the rising cost of fraud, and the technologies carriers can use to protect themselves and their customers.
About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.